Zegona to purchase Telecable for €640 million
Investment firm Zegona Communications has agreed to purchase broadband provider Telecable de Asturias for €640 million.
Founded in 1995, Telecable has over 162,000 residential and corporate clients. The Spanish company, which provides TV, landline, mobile and broadband services, reported €131 million in revenue in 2014.
“There is a significant opportunity to continue the impressive development of the Telecable business. By combining the local knowledge of the team in Spain with the international experience and track record of Zegona, we have the right leadership to drive Telecable forward and deliver its full potential,” said Eamonn O’Hare, Zegona’s CEO.
“Telecable fits the bill in terms of our reasons for launching Zegona as it is a strategically strong business with considerable opportunity for top line growth and returns. It is also a regional champion underpinned by an extensive high speed fibre network. Our intention is to fully utilise the power of this network in order to differentiate ourselves and offer great value to customers,” he added.
Zegona will fund the acquisition with a combination of €251 million of new equity - backed by global institutional investors - as well as funds from its recent IPO and a debt facility arranged by Goldman Sachs.
The transaction is expected to close by mid-August 2015.